Taiwan, Vietnam Tech Leaders Partner To Digitalize Factories
- Sep 3, 2024
- 3 min read
Updated: Feb 10
2024/09/03 ｜Reporter/Provider - Eason Chen/Alison Nguyen/Joyce Tseng
▲Tech advocates from Taiwan and Vietnam are working together to turn traditional factories into smart ones, as Vietnam aims to digitally transform its economy.
As Vietnam pushes towards industrial modernization, Taiwanese companies are playing a pivotal role in reshaping the country’s manufacturing landscape. Industry executives in Taiwan and Vietnam are collaborating to transform traditional factories into smart ones, boosting efficiency, productivity, and technological capabilities. One such example is Anchor Fasteners, a Taiwanese-owned factory in southern Vietnam, leading the way in this ambitious digital transformation journey.
A Step Towards Digital Efficiency
At Anchor Fasteners Vietnam, the integration of digital tools begins with something as simple as scanning a QR code. Kim Thuy, the deputy production manager, demonstrates how the factory's new system works. By scanning a code, she can instantly log production data, tracking how many screws are made each day. This seemingly small step represents a significant shift from the past when stacks of paper were used to document production.
“It’s not that difficult to learn,” says Kim Thuy. “It’s easier than putting in the data manually.” This digital system allows for real-time tracking and analysis, reducing human error and streamlining operations. Anchor Fasteners Vietnam produces tens of thousands of screws daily, supplying top-tier auto manufacturers like Honda and Yamaha. The move to digital helps the factory maintain its competitive edge, aligning with Vietnam’s broader goal of evolving from a low-cost manufacturing hub to a high-tech production center.
Vietnam’s Digital Transformation Ambitions
Social scientist Tran Thi Mong Tuyen from National Chengchi University has obseryed Vietnam’s rapid development and emphasizes the importance of digital transformation in reaching developed economy status. “We already have some significant results, especially in e-commerce, digital banking and online tourism,” she notes, highlighting the country’s progress. With a growing middle class and an increasing appetite for high-end services, Vietnam is at a critical juncture where industrial modernization is not just an option but a necessity.
The country's ambition extends beyond just factories. Vietnam aims to leverage the latest in smart factory technologies and artificial intelligence (AI) to propel its industries forward. The adoption of such technologies promises to reshape the industrial landscape, making Vietnam a key player in the global supply chain.
Guiding the Digital Journey
At the heart of Anchor Fasteners’ digital transformation is the partnership between its general director, Shih Po Chang, and mechanical engineer Kenneth Chen, founder of the A1 Smart Factory Alliance. Chen’s expertise lies in creating customized roadmaps for companies looking to go digital, a service that is particularly valuable in Vietnam, where many factories still lack the foundational infrastructure needed for digital transformation.
“Most of the factories or companies, they are not ready for the so-called digital transformation,” Chen explains. “In Vietnam, you have more opportunities because people have no burden, no background, so they are used to accepting new technology.” Chen advocates a step-by-step approach, starting small—such as computerizing data from various parts of the factory—before moving on to more sophisticated upgrades.
From Surveillance to Smart AI Integration
Anchor Fasteners’ shop floor provides a glimpse into the future of manufacturing in Vietnam. Cameras currently used for surveillance could soon be integrated with AI, enabling the system to detect gestures or motions and automatically adjust machine controls. This integration could transform the way factories operate, making them more responsive and adaptable.
However, for any technological upgrade to be successful, it must be practical and embraced by the workforce. Shih Po Chang emphasizes that employees’ acceptance is crucial. “Your employees must get used to any changes you make,” Shih says. “If employees don’t make a habit out of them, then no matter how major the upgrade, you will end up back where you started.”
This balanced approach—implementing technology that benefits both the business and its employees—is key to sustaining growth and maintaining a competitive edge.
Paving the Way for Future Engineers
Executives like Shih and Chen are not working in isolation. They collaborate with tech advocates, software developers, and professors, training the next generation of engineers. Their collective goal is to equip Vietnamese firms with the right high-tech tools to contribute to the nation’s economic growth.
